WHAT A TOKEN BURN IS AND WHAT IT MEANS TO INVESTORS
The process of burning – basically destroying – tokens is something a cryptocurrency company does to increase the scarcity of their tokens. It can be done to reward token holders or simply because it is part of the operating agreement, such as a post ICO burn to eliminate any leftover tokens.
When a token becomes more scarce, in theory its price should increase because the demand for such tokens remains the same while the supply is decreased.
The process for burning tokens is fairly simple. The tokens to be destroyed are sent to an address which has a private key that is unobtainable, thereby rendering them impossible to retrieve or spend. Monetran plans to remove any profits earned by the asset account on a quarterly basis and to use those funds to buy Moneda on the open market. Those tokens will be burned, thereby increasing the scarcity and very likely triggering an increase in token price.
Monetran will always do its best to show appreciation to its token holders. The act of using profits to buy and burn tokens is another way of the company rewarding those who have had faith in Moneda and the Monetran paradigm.